Blowing up money? The earnings penalty of smoking in the 1970s and the 21st century

Lång, Elisabeth; Nystedt, Paul

doi:10.1016/j.jhealeco.2018.05.003

Cited by 6 publications

(4 citation statements)

References 60 publications

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“…The estimates for the effects of smoking are statistically similar across zygosity, which implies that the genetic influences on the effect of smoking on earnings are small. In fact, the results are very much in line with Lång and Nystedt (2018), who used Swedish twins in finding negative effects of smoking on earnings, but the estimates for smoking are statistically similar across zygosity.…”

Section: Sibling By Year Identification Strategysupporting

confidence: 82%

“…On the whole, estimates from the family fixed-effects models are consistent with those from Lång and Nystedt (2018) who use a twin by year fixed-effects research design with data from the Swedish Twin Registry to examine the effect of smoking on earnings. They estimated separate regressions by zygosity and found the effect of smoking on earnings to be negative, but the confidence intervals for the effect of smoking tended to be large.…”

Section: Resultssupporting

confidence: 52%

“…To address the concerns from differential selection into smoking, studies investigating the effect of smoking on earnings have often invoked strong econometric assumptions. Many of these studies have used distinct approaches such as covariance restrictions (Auld, 2005), instrumental variables (Anger and Kvasnicka , 2010;Van Ours, 2004), longitudinal records (Grafova and Stafford, 2009;Levine et al, 1997), and more recently twin siblings (Lång and Nystedt, 2018) to overcome issues of selection. On the whole, these studies estimate the total effect of smoking on earnings, and they find that smoking reduces earnings between 8% and 24%.…”

Section: Introductionmentioning

confidence: 99%

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The Earning Losses of Smokers

Bhai

2020

IZA Journal of Labor Economics

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Using within-family variation from twins and siblings, I find that smokers earn approximately 16% less than nonsmokers. Possible explanations for this earning difference are addiction-related productivity declines and earning reductions from higher health insurance costs. To investigate further, I use variation in the provision of employer-supplied health insurance (ESHI) to examine the mechanism of whether the addiction or insurance component has a larger influence on earnings. While I generally observe a larger earning penalty for smokers with ESHI than smokers without ESHI, the earning difference is statistically indistinguishable from zero.

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Section: Sibling By Year Identification Strategysupporting

confidence: 82%

Section: Resultssupporting

confidence: 52%

Section: Introductionmentioning

confidence: 99%

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The Earning Losses of Smokers

Bhai

2020

IZA Journal of Labor Economics

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“…As such, finer distinctions among those who drink/smoke were not possible. Second, the data set did not allow to separate those who have never smoked from those who previously smoked, preventing the comparison of quitters with others (Lång & Nystedt, 2018). This problem, as noted by Anger and Kvasnicka (2010), is rather common in the literature.…”

Section: Resultsmentioning

confidence: 99%

The link between smoking, drinking and wages: Health, workplace social capital or discrimination?

Dilmaghani

2022

Industrial Relations Journal

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Using the Canadian General Social Survey of 2016, the present article examines how smoking and drinking associate with earnings. Among both men and women, those who drink have higher wages than the abstainers. The investigation of the channel of impact indicates that health and workplace social capital only explain a small portion of the drinking premium. There is a penalty associated with occasional smoking for men and daily smoking for women. Likewise, health status and workplace social capital cannot fully explain these gaps away. Further explorations, exploiting information on workplace size and union status of the employees, suggest that the patterns are at least partly driven by differentiated treatment and discrimination. The implications are discussed.

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Are the costs of employer-sponsored health insurance passed on to workers at the individual level?

Lennon

2021

Economics & Human Biology

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Blowing up money? The earnings penalty of smoking in the 1970s and the 21st century

Cited by 6 publications

References 60 publications

The Earning Losses of Smokers

The Earning Losses of Smokers

The link between smoking, drinking and wages: Health, workplace social capital or discrimination?

Are the costs of employer-sponsored health insurance passed on to workers at the individual level?

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